Marketing Mix Flashcards
What is the marketing mix?
In order for a business to be successful, it must find the right balance between its product/service, price, place and promotion – this is referred to as the Marketing Mix.
Describe product
This is the good or service the business provided to its customers.
Describe price
This is how much a business charges for its products/services.
Describe place
This is where (location) and how (method of distribution) the product is sold by the business.
Describe promotion
This is how customers are made aware of a product/service and are persuaded to purchase it.
What are the stages product development?
GAPTAP
Generate the idea- coming up with ideas following market research.
Analyse the idea- considering the different options and picking the best one.
Produce a prototype- making a model/early version of your product.
Test the product- carry out safety tests and also carry out test marketing with customers for feedback.
Alter the product- make necessary changes following testing.
Produce the product- start production of the product.
What is branding?
A brand is a logo, name or symbol that is given to a product that makes it instantly recognisable.
Advantages of branding
Higher prices can be charged for branded products.
Brands generate brand loyalty and mean greater sales.
Brands are perceived to be of a higher quality.
Brands are instantly recognisable.
Brands reduce the need for advertising.
Brands make it easier for a business to launch a new product under the same brand name as they are perceived to be of a high standard and are reliable.
Disadvantages of branding
If a product within the brand develops a poor reputation it can damage the whole brand name.
Establishing a brand is time consuming, lengthy and expensive process.
What are own brands?
These are products which are sold under the name of a supermarket or other retailer, rather than under the name of the manufacturing firm.
Features of own brands
Own brands are often cheaper than branded products.
Own brands are often seen as being inferior quality.
Own brands appeal to the sector of the market to whom price is important.
What is packaging?
The packaging of a product is very important - it serves an important function for protecting the product but also links to how it’s promoted.
Advantages of packaging
Can protect the product during transportation/delivery.
Can increase the shelf life of a product (particularly for food items).
Can make the product attractive and encourage customers to buy.
Can provide nutritional information and health guidance.
Can inform the customer how to successfully use/install the product.
Disadvantages of packaging
Distinctive packaging could be copied by own brands.
Pressure to use environmentally friendly packaging may lead to higher costs.
If distinctive packaging is littered it could create a negative reputation (e.g. Starbucks cups on the street).
Government legislation may force you to put certain information on packaging which highlights how unhealthy the product is (e.g. traffic light indicators).
What is the product life cycle?
This refers to the length of time a business expects to sell a product. This will last for many years for successful products but potentially only weeks for others.
What are the stages of the product life cycle?
Research and Development
Introduction
Growth
Maturity
Decline
Research and development
Money is invested into developing the product, carrying out research and making a prototype (GAPTAP).
The business is making a loss at this stage.
Introduction
The product is launched onto the market.
The product is heavily advertised to inform customers.
Sales will be low at this stage with little to no profit.
Growth
The product is becoming more well known and popular.
Advertising continues but at lower rate than before.
Sales are rapidly increasing. Profit is beginning to be made.
Maturity
Sales and profits have reached their peak.
The product is well established on the market.
Advertising is used only as a reminder.
New models/variations may be introduced to encourage long term sales.
Decline
The product popularity has fallen.
Sales and profits are falling.
There is strong competition in the market.
